Auriga Industries A/S (AURIB) rose to its highest price in more than two years after Danske Bank A/S advised clients to buy the stock amid bets Denmark’s largest pesticide maker is poised for growth after cutting its debt.
Auriga jumped as much as 3.9 percent to 107 kroner, the highest since November 2010. The stock also traded at that price at 10:48 a.m. in Copenhagen with trading volume at 92 percent of the three-month daily average.
The Lemvig, Denmark-based company said yesterday it has agreed to sell its Swiss unit, booking a profit of about 40 million kroner ($7 million). Danske said today the sale will help Auriga’s capital position and increased its recommendation on the stock to buy from hold.
“The good cash flow generation also means Auriga is slightly less restricted in terms of future top-line growth,” Danske said in a note. The Copenhagen-based bank raised its 12- month price estimate on the share to 125 kroner from 90 kroner.
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